THE VOLCKER RULE
This law course provides an in-depth examination of the Volcker Rule, a key component of the Dodd-Frank Wall Street Reform and Consumer Protection Act, which aims to enhance financial stability by restricting proprietary trading and certain relationships with hedge funds and private equity funds by banks and their affiliates. The course will cover the historical context of the rule, key terms and definitions, exemptions and permitted activities, compliance and reporting requirements, the role of regulatory agencies, enforcement actions and penalties, international perspectives, and the future of the Volcker Rule and financial regulations.
Course Objectives:
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Upon successful completion of this course, students will be able to:
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Understand the historical context and objectives of the Volcker Rule and its role within the broader regulatory framework of the Dodd-Frank Act.
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Analyze and interpret key terms and definitions in the Volcker Rule, including proprietary trading, covered financial institutions, trading accounts, and high-risk assets.
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Evaluate exemptions and permitted activities under the Volcker Rule, such as market making, risk-mitigating hedging, underwriting, and trading in government obligations.
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Identify and explain the compliance and reporting requirements for covered financial institutions under the Volcker Rule, including internal compliance programs, CEO attestation, and regulatory reporting.
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Examine the roles and responsibilities of regulatory agencies, including the OCC, the Fed, the FDIC, the SEC, and the CFTC, in implementing and enforcing the Volcker Rule.
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Assess enforcement actions, penalties, and the appeals process for non-compliance with the Volcker Rule.
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Compare and contrast the Volcker Rule with international financial regulations, such as the EU’s Bank Structural Reform, the UK’s ring-fencing rules, and Canada’s Volcker Rule-equivalent regulations.
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Analyze emerging trends in financial regulation and their potential impact on the Volcker Rule and financial stability.